Group revenue fell 2 per cent, coming in at £27.7m (€32.6m) and EBITDA was £2.2m, an increase of 4 per cent on the same period last year.
Treatt Chairman said the Group had “a mixed first half, with Q1 lagging behind expectations” although he said Q2 showed a “marked improvement”.
First half ‘in line with expectations’
Overall, however, he said that the first half was ‘in line with expectations’; attributing this to tentative restocking by customers following destocking in 2009.
According to the company, prices of its mainstay ingredients including some citrus oils and aroma chemicals have strengthened since last year’s low. In particular, the price of orange oil, an ingredient which accounts for approximately 15 per cent of Group turnover, has more than doubled compared to 2009.
Treatt’s Manufacturing segment, which includes distilled and extracted essential and vegetable oils, recorded revenue of £12.2m – a drop of 16 per cent compared to the same period last year.
Sales increase in Aroma Chemicals
Conversely, the Aroma Chemicals division, which includes aroma and specialty chemicals and standardised essential oils, recorded a 13 per cent increase in revenue with a figure of £15.5m.
On a geographical basis, the company noted that sales from its UK subsidiary R. C Treatt to Hong Kong and China remained strong despite increased competition. The performance of Teatt USA, which serves the North American market, was down compared to last year, but things picked up towards the end of the period.
However, the mixed performance of its Earthoil business, which specialises in organic essential oils and pressed seed oils, failed to meet expectations, the company said.
Future outlook
Treatt said although it had begun Q3 solidly, a ‘strong degree of caution’ must be exercised regarding future outlook in light of the current, uncertain economic conditions.
The company believes full year results may exceed original expectations, although to what extent is unknown, as it is unclear whether the recent rise in sales was due to customer restocking or consumer demand.